Wednesday, May 16, 2012

Smoke may be clearing a bit / UNG

It looks like the initial knee jerk volatility in the market may be clearing a bit, but in the mean time, most of you know there are only 2 long term longs I would consider in this market, 1) URRE I think is still in the basing process, the other UNG, we have recently looked at and felt something was turning there. I'll cover it in greater detail later, but a member reminded me of it and it's smoking today.

The last time we looked at UNG it was forming a triangle that looked like a breakout was coming. UNG is p over 5% today.

For those of you who are in UNG (and probably have been for some time), congratulations. For those who are interested, I find it hard to chase on a day like today, but it did break out through a trendline I've had in place for almost 2 months and the next area will be around the $20 level.  If you were interested in UNG as a long or hedge trade, I think I might give it a few days and see if it will pull back to the 10-day moving average.

We'll take a closer look at UNG and URRE later.

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